Crux of Central Excise Under Budget 2012-13

[ajay singh]

Widening the meaning of Inter-connected Undertakings in section 4, in sub-section (3), in clause (b), in the Explanation, for clause (i) . Budget 2012-13 has given the meaning and explanation of Inter-connected Undertakings. If the mentioned conditions are fulfilled than more undertakings are come under the definition of ICUs. It means more revenue.

Regarding Offences and penalty in section 9 of the Central Excise Act, in sub-section (1), in clause (i) , for the words "one lakh", the words "thirty lakh" shall be substituted. It means whoever attempts to commit, or abets the commission of, any of the offences mentioned in clauses (a) and (b) of this section; shall be punishable if the amount of duty exceeds thirty lakh rupees previously it was one lakh rupees.

Widening the meaning of non cognizable offences this budget has inserted in sub-section (1) of section 9A Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences under this Act (except an offence punishable for a term of imprisonment of three years or more under section 9) shall be non-cognizable .

For the recovery of duty under sub-section (5) of Section 11A of the Central Excise Act 1945 budget 2012-13 for the words "has not been levied or paid or", the words "has not been levied or paid or has been" shall be substituted . For sub-section (8), the following sub-section shall be substituted, namely. “Where the service of notice is stayed by an order of a court or tribunal, the period of such stay shall be excluded in computing the period of one year referred to in clause (a) of sub-section 45(1) or five years referred to in sub-section (4) or sub-section (5), as the case may be ”. In section 11AC of the Central Excise Act, in sub-section (1) , in clause (c), for the words "duty so determined", the words "duty so determined only in a case where the penalty is paid within the period so specified" shall be substituted.

Power has given to Central Excise Officer by inserting new subsection(1) of section 13, to arrest any person if he has reason to believe that such person has committed an offence punishable under this Act, he may arrest such person and shall, as soon as may be, inform him of the grounds for such arrest. It means that Code of Criminal Procedure will be applicable.

For the amendment in Section 5A, sub section (1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 62 (E), dated the 6th February, 2010 (hereinafter referred to as the said notification),issued under sub-section (1) of section 5A of the Central Excise Act, 1944, shall stand amended and shall be deemed to have been amended retrospectively, in the manner specified in column (2) of the Fifth Schedule, on and from the corresponding date specified in column (3) of that Schedule, against the said notification specified in column (1) of that Schedule.

(2) For the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to amend the said notification with retrospective effect as if the Central Government had the power to amend the said notification under sub-section (1) of section 5A of the Central Excise Act, 1944, retrospectively, at all material times.

Explanation—  For the removal of doubts, it is hereby declared that no act or omission on the part of any person shall be punishable as an offence which would not have been so punishable had the said notification not been amended retrospectively.